When it comes to the world’s largest economies, Europe and United States do top the list and that is why the dollar pairing of these two economies are the favourites of Forex traders. Of the two, US Dollar enjoys a unique reputation as it is the currency used in most of the international financial business. It is also a reserve currency. The United States being the largest economy on the globe, the USD is in a strong position but if the economy is down, the dollar also takes position accordingly.
It is the same case with European Union. Also, another factor that determines the dollar strength is the interest rates in the US. If they are higher when compared to the main nations in European Union, the strength of the dollar raises but if the interest rates in EU surge higher, then the dollar ultimately weakens.
The current trend in EUR USD
The 1.1260 level is offering much resistance to the bearish trend and even last week, it was observed that the bearish surrounding sample was formed near the resistance level.
It has to be noted that there can be a quick fall of EURUSD pair near 1.09594 level. A retest of the level will happen only if the non-farm employment data that is expected soon to be negative until then, the level can offer support to the pair albeit temporarily. If this level is overcome then a movement up towards 1.1500 levels can be expected. That is why it is advised that buyers should come forward only if the 1.1300 resistance level is reached.
Also, it should be noted that there is no bearing momentum as far as EURUSD is concerned. No trader is hence trying to sell Euro. But if the dollar pair is overcoming the 1.09594 level which is the support level, then a downward movement to the 1.0800 level can be hoped. This will mean that the pair will have a strong selling pressure if there is a suitable crack of this level, as that is when the EURUSD pair will point towards the 1.0500 level. If the pair closes at this level, it will mean that the pair’s bullish momentum is ended. That is why the technical analysis eurusd is that taking into account all these factors and also the current economy of the United States, it will be preferable that the EURUSD is bullish.